When it comes time to sell your home, determining its exact value can be a challenge. Naturally, homeowners want to get the most value for their home. However, if it hits the market at too high a price, it could cause serious complications in the selling process.
An overpriced Seaport condo for sale creates a kind of seller’s limbo that draws the attention of the wrong buyers, which is a surefire way to start your selling process off on the wrong foot.
A vast majority of homebuyers begin their home search online, especially during these days of social distancing amidst the COVID-19 pandemic. If your home is overpriced in comparison to other listings in your area, it won’t appear in their search results. In this way, an overpriced home is blind to its intended buyers and actually drives traffic to nearby listings that are more accurately priced.
An overpriced Boston condo for sale can’t compete with listings in a more expensive bracket. Buyers know what they want, and they know what to expect in their price range. When they notice a home is missing the square footage, features, and amenities typically found in others at the same price, they will quickly lose interest.
Showings—both physical and virtual—play a significant role in the sale of your Beacon Hill condo for sale. They give buyers a first-hand look and provide them the opportunity to ask questions and gather more information. Selling your home is a numbers game. The more showings scheduled at your listing, the more potential buyers you have. The more potential buyers, the greater chance of an offer.
Your agent knows that showings are critical to capturing buyer interest. But if the home is overpriced, they will have difficulty attracting attention to your home. This can slow the entire home selling process, leaving both the seller and agent feeling frustrated.
Think of the home you’re selling as a fresh tomato. Off the vine (newly listed), it is fresh and attractive, appealing to everyone in the market and standing out amongst the other tomatoes. As time goes on, no one buys the tomato and it begins to overripen and wither, losing its appeal. This is what happens to an overpriced Boston condo for sale in the minds of buyers.
New Boston condo for sale listings attract the most attention—that’s when buyer interest is highest. The longer your home is on the market, the less appealing it becomes. At a certain point, sellers are forced to lower the price. However, this lowered price won’t have the same impact as hitting the market correctly priced the first time. Once price drops begin, they can continue, which creates the risk of selling the home for less than what it is worth.
Lastly, the longer your home is on the market, the more expenses you incur. Mortgage payments, utility costs, and seller’s fees will continue to pile up, making it harder to recover from these costs when your home does eventually sell.
Let’s say you do find a buyer at the overpriced cost. During the closing, the lender will order an appraisal of your home, and if the appraiser finds that the market value of the home is less than the selling price, they could potentially deny financing.
We get it. It’s a seller’s market out there (for now) but even in a hot market, overpricing your Boston condos for sale can be bad business. At Ford Realty, we’re big believers in the data behind properly-priced Beacon Hill homes; they sell faster and for more money than homes that are asking too much.
But maybe you’ve already signed with an agent and are on the market with a price you’re worried is too high? If you suspect you may have overpriced your Beacon Hill condo, here’s how to tell.
The number one way to tell your Boston condo overpriced? If your neighbors are going on and off-market while your home is just sitting there! Particularly if you’re in a “hot” neighborhood like Beacon Hill or Boston Midtown, your home should be seeing offers within the first few weeks on the market. Unfortunately, by pricing yourself too high, buyers see your neighbors’ lower-priced homes as a value and quickly snap them up. Oops!
There are only a few reasons you wouldn’t be getting showing requests in a seller’s market. One is that your downtown Boston condos photos aren’t good (your agent used a professional photographer, right?) and the other is that you’re overpriced. Think of buyers searching under “thresholds.” Those are usually nice, round numbers like $500,000 or $975,000…if your home is priced above (especially just above) one of these thresholds you may not even be appearing in buyers’ MLS search results. Of course, a good buyer’s agent should be showing them your Boston home, anyway, but you can’t count on it.
Of course, without showings you won’t be getting offers, but what if you have tons of showings but no offers? This is a clear indication you’re not only asking too much but way too much. Buyers know home prices are somewhat negotiable so if they’re really interested, they’ll throw out an offer just to see what might happen. If they come to the table already feeling like you’re way too far apart on the price to meet at an agreeable price they may just choose to avoid the negotiating hassle altogether.
Particularly in a low-inventory market, some Realtors are anxious to get more listings. In an ideal world, you and your agent will agree on a price together based on data, comps, and experience. In a world where your home is overpriced, you’ll throw out an inadvertently-high number and your agent will say, “No problem!” Sellers can’t be as objective about the price as agents can, so if you priced your own home you may be asking for trouble.
We’ve written before about overpricing your Boston condo for sale and the stress it can bring. There’s more to selling than putting it on MLS remember, no amount of effective marketing will work if your Boston condo for sale is priced too high.